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SHIRE OF GINGIN
BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
LOCAL GOVERNMENT ACT 1995
TABLE OF CONTENTS
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SHIRE'S VISION"We are a welcoming and progressive community that celebrates its
diversity and unique rural & coastal environment"
Statement of Comprehensive Income by Nature or Type
Basis of Preparation
Statement of Comprehensive Income by Program
Statement of Cash Flows
Rate Setting Statement
Index of Notes to the Budget
SHIRE OF GINGIN
STATEMENT OF COMPREHENSIVE INCOME
BY NATURE OR TYPE
FOR THE YEAR ENDED 30 JUNE 2021
2020/21 2019/20 2019/20
NOTE Budget Actual Budget
$ $ $
Revenue
Rates 1(a) 8,366,400 8,356,820 8,370,427
Operating grants, subsidies and
contributions 10(a) 2,220,668 4,135,567 1,989,036
Fees and charges 9 4,191,433 3,810,887 4,444,870
Interest earnings 12(a) 201,000 283,134 271,000
Other revenue 12(b) 108,993 383,789 125,179
15,088,494 16,970,197 15,200,512
Expenses
Employee costs (6,178,914) (6,020,186) (6,416,925)
Materials and contracts (5,247,321) (5,378,767) (5,721,629)
Utility charges (432,884) (432,664) (435,934)
Depreciation on non-current assets 5 (4,922,878) (3,078,098) (4,869,205)
Interest expenses 12(d) (110,075) (118,725) (120,885)
Insurance expenses (467,076) (483,190) (461,619)
Other expenditure (422,656) (2,864,955) (747,820)
(17,781,804) (18,376,585) (18,774,017)
Subtotal (2,693,310) (1,406,388) (3,573,505)
Non-operating grants, subsidies and
contributions 10(b) 12,774,739 4,050,281 9,997,448
Profit on asset disposals 4(b) 0 9,796 180,048
Loss on asset disposals 4(b) 0 (83,759) (38,392)
12,774,739 3,976,318 10,139,104
Net result 10,081,429 2,569,930 6,565,599
Other comprehensive income
Changes on revaluation of non-current assets 0 0 0
Total other comprehensive income 0 0 0
Total comprehensive income 10,081,429 2,569,930 6,565,599
This statement is to be read in conjunction with the accompanying notes.
| 2
SHIRE OF GINGIN
FOR THE YEAR ENDED 30 JUNE 2021
BASIS OF PREPARATION REVENUES (CONTINUED)
The budget has been prepared in accordance with Australian Accounting OPERATING GRANTS, SUBSIDIES AND CONTRIBUTIONS
Standards (as they apply to local governments and not-for-profit entities) and Refer to all amounts received as grants, subsidies and contributions that are
interpretations of the Australian Accounting Standards Board, and the Local not non-operating grants.
Government Act 1995 and accompanying regulations. The Local Government
(Financial Management) Regulations 1996 take precedence over Australian NON-OPERATING GRANTS, SUBSIDIES AND
Accounting Standards. Regulation 16 prohibits a local government from CONTRIBUTIONS
recognising as assets Crown land that is a public thoroughfare, such as land Amounts received specifically for the acquisition, construction of new or the
under roads, and land not owned by but under the control or management of upgrading of noncurrent assets paid to a local government, irrespective of
the local government, unless it is a golf course, showground, racecourse or whether these amounts are received as capital grants, subsidies, contributions
recreational facility of State or regional significance. Consequently, some or donations.
assets, including land under roads acquired on or after 1 July 2008, have not
been recognised in this budget. This is not in accordance with the requirements FEES AND CHARGES
of AASB 1051 Land Under Roads paragraph 15 and AASB 116 Property, Plant Revenue (other than service charges) from the use of facilities and charges
and Equipment paragraph 7. made for local government services, sewerage rates, rentals, hire charges, fee
for service, photocopying charges, licences, sale of goods or information, fines,
Accounting policies which have been adopted in the preparation of this budget penalties and administration fees. Local governments may wish to disclose
have been consistently applied unless stated otherwise. Except for cash flow more detail such as rubbish collection fees, rental of property, fines and
and rate setting information, the budget has been prepared on the accrual basis penalties, other fees and charges.
and is based on historical costs, modified, where applicable, by the
measurement at fair value of selected non-current assets, financial assets and INTEREST EARNINGS
liabilities. Interest and other items of a similar nature received from bank and investment
accounts, interest on rate instalments, interest on rate arrears and interest on
THE LOCAL GOVERNMENT REPORTING ENTITY debtors.
All funds through which the Shire of Gingin controls resources
to carry on its functions have been included in the financial statements forming OTHER REVENUE / INCOME
part of this budget. Other revenue, which can not be classified under the above headings, includes
dividends, discounts, and rebates. Reimbursements and recoveries should be
In the process of reporting on the local government as a single unit, all separated by note to ensure the correct calculation of ratios.
transactions and balances between those Funds (for example, loans and
transfers between Funds) have been eliminated. EXPENSES
EMPLOYEE COSTS
All monies held in the Trust Fund are excluded from the financial statements. All costs associated with the employment of person such as salaries, wages,
A separate statement of those monies appears at Note 16 to the budget. allowances, benefits such as vehicle and housing, superannuation, employment
expenses, removal expenses, relocation expenses, worker's compensation
2019/20 ACTUAL BALANCES insurance, training costs, conferences safety expenses, medical examinations,
Balances shown in this budget as 2019/20 Actual are estimates as forecast at fringe benefit tax, etc.
the time of budget preparation and are subject to final adjustments.
MATERIALS AND CONTRACTS
CHANGE IN ACCOUNTING POLICIES All expenditures on materials, supplies and contracts not classified under other
On the 1 July 2020 the following new accounting policies are to headings. These include supply of goods and materials, legal expenses,
be adopted and may impact the preparation of the budget: consultancy, maintenance agreements, communication expenses, advertising
AASB 1059 Service Concession Arrangements: Grantors expenses, membership, periodicals, publications, hire expenses, rental, leases,
AASB 2018-7 Amendments to Australian Accounting Standards - Materiality postage and freight etc. Local governments may wish to disclose more detail
such as contract services, consultancy, information technology, rental or lease
AASB 1059 is not expected to impact the annual budget. expenditures.
Specific impacts of AASB 2018-7 have not been identified.
UTILITIES (GAS, ELECTRICITY, WATER, ETC.)
KEY TERMS AND DEFINITIONS - NATURE OR TYPE Expenditures made to the respective agencies for the provision of power, gas
or water. Exclude expenditures incurred for the reinstatement of roadwork on
REVENUES behalf of these agencies.
RATES
All rates levied under the Local Government Act 1995 . Includes general, INSURANCE
differential, specified area rates, minimum rates, interim rates, back rates, All insurance other than worker's compensation and health benefit insurance
ex-gratia rates, less discounts and concessions offered. Exclude administration included as a cost of employment.
fees, interest on instalments, interest on arrears, service charges and
sewerage rates. LOSS ON ASSET DISPOSAL
Loss on the disposal of fixed assets includes loss on disposal of long term
SERVICE CHARGES investments.
Service charges imposed under Division 6 of Part 6 of the Local Government
Act 1995. Regulation 54 of the Local Government (Financial Management) DEPRECIATION ON NON-CURRENT ASSETS
Regulations 1996 identifies these as television and radio broadcasting, Depreciation and amortisation expense raised on all classes of assets.
underground electricity and neighbourhood surveillance services.
INTEREST EXPENSES
Excludes rubbish removal charges. Interest and other items of a similar Interest and other costs of finance paid, including costs of finance for loan
nature received from bank and investment accounts, interest on rate debentures, overdraft accommodation and refinancing expenses.
instalments, interest on rate arrears and interest on debtors.
OTHER EXPENDITURE
PROFIT ON ASSET DISPOSAL Statutory fees, taxes, provision for bad debts, member's fees or State taxes.
Profit on the disposal of assets including gains on the disposal of long term Donations and subsidies made to community groups.
investments. Losses are disclosed under the expenditure classifications.
| 3
SHIRE OF GINGIN
STATEMENT OF COMPREHENSIVE INCOME
BY PROGRAM
FOR THE YEAR ENDED 30 JUNE 2021
2020/21 2019/20 2019/20
NOTE Budget Actual Budget
Revenue 1,9,10(a),12(a),12(b) $ $ $
Governance 2,000 0 2,050
General purpose funding 9,500,914 10,469,597 9,670,941
Law, order, public safety 708,280 986,429 483,105
Health 723,500 450,101 665,491
Education and welfare 108,787 96,391 103,320
Housing 12,000 23,553 36,000
Community amenities 1,916,080 1,719,904 1,848,110
Recreation and culture 257,668 161,230 240,196
Transport 207,514 229,279 292,514
Economic services 1,428,651 1,332,188 1,625,687
Other property and services 223,100 1,501,525 233,098
15,088,494 16,970,197 15,200,512
Expenses excluding finance costs 4(a),5,12(c),(e),(f)
Governance (1,160,411) (1,261,085) (1,199,362)
General purpose funding (474,767) (464,037) (708,736)
Law, order, public safety (1,794,849) (2,077,453) (1,669,539)
Health (993,855) (1,141,827) (1,178,274)
Education and welfare (226,486) (266,345) (250,020)
Housing (41,645) (65,190) (40,208)
Community amenities (3,146,395) (2,757,616) (3,134,930)
Recreation and culture (3,784,908) (3,685,575) (3,835,821)
Transport (4,060,146) (3,964,919) (4,530,903)
Economic services (1,270,147) (1,148,893) (1,368,761)
Other property and services (718,120) (1,424,920) (736,578)
(17,671,729) (18,257,860) (18,653,132)
Finance costs ,7,6(a),12(d)
Health (8,070) (9,154) (9,910)
Community amenities (31,448) (32,498) (33,126)
Recreation and culture (56,688) (61,296) (61,888)
Economic services (2,345) (2,977) (3,347)
Other property and services (11,524) (12,800) (12,614)
(110,075) (118,725) (120,885)
Subtotal (2,693,310) (1,406,388) (3,573,505)
Non-operating grants, subsidies and contributions 10(b) 12,774,739 4,050,281 9,997,448
Profit on disposal of assets 4(b) 0 9,796 180,048
(Loss) on disposal of assets 4(b) 0 (83,759) (38,392)
12,774,739 3,976,318 10,139,104
Net result 10,081,429 2,569,930 6,565,599
Other comprehensive income
Changes on revaluation of non-current assets 0 0 0
Total other comprehensive income 0 0 0
Total comprehensive income 10,081,429 2,569,930 6,565,599
This statement is to be read in conjunction with the accompanying notes. | 4
SHIRE OF GINGIN
FOR THE YEAR ENDED 30 JUNE 2021
KEY TERMS AND DEFINITIONS - REPORTING PROGRAMS
In order to discharge its responsibilities to the community, Council has developed a set of operational
OBJECTIVE ACTIVITIES
GOVERNANCE
To provide a decision making process for the
efficient allocation of scarce resources
Includes the activities of members of council and the administrative
support available to the council for the provision of governance of the
district. Other costs relate to the task of assisting elected members and
ratepayers on matters which do not concern specific council services.
GENERAL PURPOSE FUNDING
To collect revenue to allow for the provision of
services
Rates, general purpose government grants and interest revenue
LAW, ORDER, PUBLIC SAFETY
To provide services to help ensure a safer and
environmentally conscious community
Supervision and enforcement of various local laws relating to fire
prevention, animal control and other aspects of public safety including
emergency services
HEALTH
To provide an operational framework for
environmental and community health
Inspection of food outlets and their control, noise control and waste
disposal compliance
EDUCATION AND WELFARE
To provide services to disadvantaged persons, the
elderly, children and youth
Maintenance of playgroup centre, aged care housing and Wangaree
Community Centre. Provision and maintenance of youth services
HOUSING
To provide and maintain staff and other housing Provision and maintenance of staff and other housing
COMMUNITY AMENITIES
To provide services required by the community Rubbish collection services, operation of rubbish disposal sites, litter
control, construction and maintenance of urban storm water drains,
protection of the environment and administration of town planning
schemes, cemetery and public conveniences
RECREATION AND CULTURE
To establish and effectively manage infrastructure
and resource which will help the social well being of
the community
Maintenance of public halls, civic centres, aquatic centre, beaches,
recreation centres and various sporting facilities. Provision and
maintenance of parks, gardens and playgrounds. Operation of library
and other cultural facilities
TRANSPORT
To provide safe, effective and efficient transport
services to the community
Construction and maintenance of roads, streets, footpaths, depots,
cycle ways, parking facilities and traffic control. Cleaning of streets and
maintenance of street trees, street lighting etc.
ECONOMIC SERVICES
To help promote the shire and its economic
wellbeing
Tourism and area promotion including the maintenance and operation of
a caravan park. Provision of rural services including weed control,
vermin control and standpipes. Building Control
OTHER PROPERTY AND SERVICES
To monitor and control Shire’s overheads operating
accounts
Private works operation, plant repair and operation costs and
engineering operation costs, administration costs allocated and other
unclassified works and services
and financial objectives. These objectives have been established both on an overall basis, reflected
by the Shire's Community Vision, and for each of its broad activities/programs.
| 5
SHIRE OF GINGIN
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
2020/21 2019/20 2019/20
NOTE Budget Actual Budget
$ $ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts
Rates 8,366,400 8,334,033 9,320,427
Operating grants, subsidies and contributions 2,220,667 4,135,567 2,189,036
Fees and charges 4,191,433 3,720,052 4,444,870
Interest earnings 201,000 283,134 271,000
Goods and services tax 0 7,657 5,794
Other revenue 108,993 383,789 125,179
15,088,493 16,864,232 16,356,306
Payments
Employee costs (6,178,914) (6,074,132) (6,416,925)
Materials and contracts (5,247,321) (4,951,462) (7,017,329)
Utility charges (432,884) (432,664) (435,934)
Interest expenses (110,075) (121,264) (120,885)
Insurance expenses (467,076) (483,190) (461,619)
Other expenditure (422,655) (2,864,955) (747,820)
(12,858,925) (14,927,667) (15,200,512)
Net cash provided by (used in)
operating activities 3 2,229,568 1,936,565 1,155,794
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property, plant & equipment 4(a) (6,582,668) (1,061,150) (5,314,309)
Payments for construction of infrastructure 4(a) (12,062,667) (4,436,866) (9,058,708)
Non-operating grants, subsidies and contributions 12,774,739 5,669,706 9,997,448
Proceeds from sale of plant and equipment 4(b) 253,545 301,500 332,091
Proceeds on financial assets at amortised cost - self supporting loans 6(a) 13,505 8,405 26,659
Net cash provided by (used in)
investing activities (5,603,546) 481,595 (4,016,819)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings 6(a) (222,197) (211,388) (213,371)
Principal elements of lease payments 7 (7,580) (31,199) 0
Advances to community groups 0 0 (12,840)
Proceeds from new borrowings 6(b) 527,000 0 830,440
Net cash provided by (used in)
financing activities 297,223 (242,587) 604,229
Net increase (decrease) in cash held (3,076,755) 2,175,573 (2,256,796)
Cash at beginning of year 9,424,688 7,249,115 6,790,800
Cash and cash equivalents
at the end of the year 3 6,347,933 9,424,688 4,534,004
This statement is to be read in conjunction with the accompanying notes.
| 6
SHIRE OF GINGIN
RATE SETTING STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
2020/21 2019/20 2019/20
NOTE Budget Actual Budget
$ $ $
OPERATING ACTIVITIES
Net current assets at start of financial year - surplus/(deficit) 2,018,290 2,797,063 2,349,362
2,018,290 2,797,063 2,349,362
Revenue from operating activities (excluding rates)
Governance 2,000 0 2,050
General purpose funding 1,134,514 2,112,777 1,300,514
Law, order, public safety 708,280 990,166 483,105
Health 723,500 450,101 680,195
Education and welfare 108,787 96,391 144,620
Housing 12,000 23,553 36,000
Community amenities 1,916,080 1,719,904 1,848,110
Recreation and culture 257,668 161,230 240,196
Transport 207,514 235,338 416,558
Economic services 1,428,651 1,332,188 1,625,687
Other property and services 223,100 1,501,525 233,098
6,722,094 8,623,173 7,010,133
Expenditure from operating activities
Governance (1,160,411) (1,261,085) (1,199,362)
General purpose funding (474,767) (464,037) (708,736)
Law, order, public safety (1,794,849) (2,077,453) (1,674,529)
Health (1,001,925) (1,155,315) (1,188,184)
Education and welfare (226,486) (266,345) (250,020)
Housing (41,645) (65,190) (40,208)
Community amenities (3,177,843) (2,790,114) (3,168,056)
Recreation and culture (3,841,596) (3,747,461) (3,897,709)
Transport (4,060,146) (3,985,848) (4,564,305)
Economic services (1,272,492) (1,153,779) (1,372,108)
Other property and services (729,644) (1,493,717) (749,192)
(17,781,804) (18,460,344) (18,812,409)
Non-cash amounts excluded from operating activities 2 (a)(i) 4,922,878 3,152,061 4,727,549
Amount attributable to operating activities (4,118,542) (3,888,047) (4,725,365)
INVESTING ACTIVITIES
Non-operating grants, subsidies and contributions 10(b) 12,774,739 4,050,281 9,997,448
Purchase property, plant and equipment 4(a) (6,582,668) (1,061,150) (5,314,309)
Purchase and construction of infrastructure 4(a) (12,062,667) (4,436,866) (9,058,708)
Proceeds from disposal of assets 4(b) 253,545 301,500 332,091
Proceeds from self supporting loans 6(a) 13,505 8,406 26,659
Advances of self supporting loans 6(a) 0 0 (12,840)
Amount attributable to investing activities (5,603,546) (1,137,829) (4,029,659)
FINANCING ACTIVITIES
Repayment of borrowings 6(a) (222,197) (211,388) (213,371)
Principal elements of finance lease payments 7 (7,580) (31,199) 0
Proceeds from new borrowings 6(b) 527,000 0 830,440
Transfer to Restricted Cash 553,641 0 1,295,614
Transfer from Restricted Cash (12,864) 0 (1,445,245)
Transfers to cash backed reserves (restricted assets) 8(a) (47,013) (1,298,985) (405,924)
Transfers from cash backed reserves (restricted assets) 8(a) 564,701 228,918 323,083
Amount attributable to financing activities 1,355,688 (1,312,654) 384,597
Budgeted deficiency before general rates (8,366,400) (6,338,530) (8,370,427)
Estimated amount to be raised from general rates 1 8,366,400 8,356,820 8,370,427
Net current assets at end of financial year - surplus/(deficit) 2 (a)(iii) 0 2,018,290 0
This statement is to be read in conjunction with the accompanying notes.
| 7
SHIRE OF GINGIN
INDEX OF NOTES TO THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
Note 1 Rates 15
Note 2 Net Current Assets 23
Note 3 Reconciliation of Cash 26
Note 4(a) Asset Acquisitions 27
Note 4(b) Asset Disposals 28
Note 5 Asset Depreciation 29
Note 6 Borrowings 30
Note 7 Leases 35
Note 8 Reserves 36
Note 9 Fees and Charges 37
Note 10 Grant Revenue 37
Note 11 Revenue Recognition 39
Note 12 Other Information 40
Note 13 Major Land Transactions 41
Note 14 Trading Undertakings and Major Trading Undertakings 42
Note 15 Interests in Joint Arrangements 43
Note 16 Trust 44
Note 17 Significant Accounting Policies - Other Information 45
Note 18 Change in Accounting Policies 46
Note 19 Budget Ratios 47
| 8
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
1. RATES AND SERVICE CHARGES
(a) Rating Information
2020/21 2020/21 2020/21 2020/21 2019/20 2019/20
Number Budgeted Budgeted Budgeted Budgeted Actual Budget
of Rateable rate interim back total total total
RATE TYPE Rate in properties value revenue rates rates revenue revenue revenue
$ $ $ $ $ $ $ $
Differential general rate or general rate
GRV Townsites 0.08751 1,546 26,074,194 2,281,778 10,000 2,000 2,293,778 2,324,271 2,293,448
GRV Other 0.08751 908 14,887,682 1,302,836 0 0 1,302,836 1,280,492 1,280,492
Unimproved valuations
UV Rural 0.00497 413 264,837,000 1,314,917 0 0 1,314,917 1,341,352 1,341,352
UV Other 0.00497 2 1,872,000 9,294 0 0 9,294 9,334 9,334
UV Intensive/Mining 0.00925 135 72,399,000 669,329 0 0 669,329 633,507 633,507
UV Exploration Mining 0.00497 0 0 0 0 0 0 0 0
Sub-Totals 3,004 380,069,876 5,578,154 10,000 2,000 5,590,154 5,588,956 5,558,133
Minimum
Minimum payment $
GRV Townsites 1,110 1,082 9,291,624 1,201,020 0 0 1,201,020 1,212,120 1,212,120
GRV Other 1,110 769 4,790,360 853,590 0 0 853,590 869,130 869,130
Unimproved valuations
UV Rural 1,400 378 76,674,110 529,200 0 0 529,200 522,200 522,200
UV Other 1,400 2 425,000 2,800 0 0 2,800 0 2,800
UV Intensive/Mining 2,548 107 18,740,524 272,636 0 0 272,636 262,444 262,444
UV Exploration Mining 1,400 30 95,498 42,000 0 0 42,000 36,400 33,600
Sub-Totals 2,368 110,017,116 2,901,246 0 0 2,901,246 2,902,294 2,902,294
5,372 490,086,992 8,479,400 10,000 2,000 8,491,400 8,491,250 8,460,427
Concessions (Refer note 1(g)) (130,000) (139,357) (95,000)
Total amount raised from general rates 8,361,400 8,351,893 8,365,427
Ex-gratia rates 5,000 4,927 5,000
Total rates 8,366,400 8,356,820 8,370,427
All land (other than exempt land) in the Shire of Gingin is rated according to its Gross Rental Value (GRV) in townsites or Unimproved Value (UV) in the
remainder of the Shire of Gingin.
The general rates detailed for the 2020/21 financial year have been determined by Council on the basis of raising the revenue required to meet the deficiency between the
total estimated expenditure proposed in the budget and the estimated revenue to be received from all sources other than rates and also considering the extent of any increase
in rating over the level adopted in the previous year.
The minimum rates have been determined by Council on the basis that all ratepayers must make a reasonable contribution to the cost of local government services/facilities.
Gross rental valuations
Gross rental valuations
| 9
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
1. RATES AND SERVICE CHARGES (CONTINUED)
(b) Interest Charges and Instalments - Rates and Service Charges
The following instalment options are available to ratepayers for the payment of rates and service charges.
Instalment Unpaid Instalment plan ratesplan admin interest interest
Instalment options Date due charge rate rates
$ % %
Option one
One payment 16/09/2020 0 0.0% 8.0%
Option two
Instalment 1 16/09/2020 0 5.5% 8.0%
Instalment 2 16/11/2020 0 5.5% 8.0%
Option three
Instalment 1 16/09/2020 0 5.5% 8.0%
Instalment 2 16/11/2020 0 5.5% 8.0%
Instalment 3 18/01/2021 0 5.5% 8.0%
Instalment 4 18/03/2021 0 5.5% 8.0%
2020/21 2019/20 2019/20Budget Actual Budgetrevenue revenue revenue
$ $ $
Instalment plan admin charge revenue 0 19,630 22,000Instalment plan interest earned 29,000 28,676 29,000Unpaid rates and service charge interest earned 110,000 155,334 110,000Deferred Pensioner Rates Interest 2,000 2,368 0
141,000 206,008 161,000
| 10
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
1. RATES AND SERVICE CHARGES (CONTINUED)
(c) Objectives and Reasons for Differential Rating
To provide equity in the rating of properties across the Shire the following rate categories have been determined for the implementation of differential rating.
Differential general rate
Description Reasons
Rural and Rural Other(including explorationand prospectingtenements).
(d) Differential Minimum Payment
Description Characteristics Reasons
Rural and Rural Other(including explorationand prospectingtenements).
ObjectsCharacteristics
Objects
Where land is used predominantly for ruralpurposes, the rate levied shall be based uponits unimproved value (UV).
The objective of this differential rating category is to impose adifferential general rate on land held or used for the purposes ofrural broad acre farming, rural residential, rural industry, othernon-intensive uses as determined by Council (includingexploration and prospecting tenements).
It recognises that land within this category does not have thesame impacts on Shire transport infrastructure as the ruralintensive/mining differential rate category.
Rural Intensive/Mining(excluding explorationand prospectingtenements)
Any or a combination of the followingcharacteristics:
The objective of this differential rating category is to impose adifferential general rate on land held or used for the purposes ofAgriculture Intensive, Animal Husbandry - Intensive (excludingexploration and prospecting tenements), Extractive Industry,Mining, Aquaculture, or Water.
It recognises that land within this category has higher impactson Shire transport infrastructure and increased environmentalmonitoring costs.
(a) The purpose for which the land is zoned,whether or not under a local planning scheme (b) a purpose for which the land is held or usedas determined by the local government; or
(c) whether the land is vacant or not; or
(d) any other characteristic or combination ofcharacteristics prescribed.
Where land is used predominantly for ruralpurposes, the rate levied shall be based uponits unimproved value (UV).
The objective of the proposed minimum payment of $1,400 is toensure that the proportion of total rate revenue derived fromRural and Rural Other UV properties is essentially consistentwith the overall rate increase for this category (includingexploration and prospecting tenements).
It recognises that every property receives a minimum level ofbenefit from works and services provided.
Rural Intensive/Mining(excluding explorationand prospectingtenements)
Any or a combination of the followingcharacteristics:
The objective of this minimum payment is to reflect theadditional costs from this sector associated with the higherimpact on transport infrastructure and environmentalmonitoring. The minimum rate of $2,548 also ensures that theproportion of total rate revenue from Rural Intensive/Mining UVproperties (excluding exploratioin and prospecting tenements) isessentially consistent with the overall rate increase for thiscategory.
It recognises that land within this category has higher impactson Shire transport infrastructure and increased environmentalmonitoring costs, and the capacity of property owners to passon the rates charge as a business cost.
(a) The purpose for which the land is zoned,whether or not under a local planning scheme (b) a purpose for which the land is held or usedas determined by the local government; or(c) whether the land is vacant or not; or
(d) any other characteristic or combination ofcharacteristics prescribed.
| 11
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
1. RATES AND SERVICE CHARGES (CONTINUED)
(e) Specified Area Rate
The Shire did not raise specified area rates for the year ended 30 June 2021.
(f) Service Charges
The Shire did not raise service charges for the year ended 30 June 2021.
1. RATES AND SERVICE CHARGES (CONTINUED)
(g) Waivers or concessions
Rate or fee and charge Circumstances in which the
to which the waiver or 2020/21 2019/20 2019/20 waiver or concession is Objects and reasons of theconcession is granted Type Discount % Discount ($) Budget Actual Budget granted waiver or concession
$ $ $
Split Use concession is a mix of non-intensive and intensive use on a property
Concession Based on the area of land on the property used for nonintensive purposes.
N/A 130,000 138,022 95,000
130,000 138,022 95,000
To ensure that the rates paid for a property appropriately reflect the use of the property. Property owners within the Shire carry on a variety of mised uses on their land, which some using less than 75% of non-intensive rural uses. The concession provides from these situations by ensuring the property owner only pays the relevant rates applicable to the use of the land.
A concession is granted based on the area of land used for non-intensice rural purposes. The rates concession is calculated by determining the percentage of property used for intersive purposes, the balance being non intensive.
| 12
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
2 (a). NET CURRENT ASSETS
Items excluded from calculation of budgeted deficiency
When calculating the budget deficiency for the purpose of
Section 6.2 (2)(c) of the Local Government Act 1995 the
following amounts have been excluded as provided by 2020/21 2019/20 2019/20
Local Government (Financial Management) Regulation 32 Budget Actual Budget
which will not fund the budgeted expenditure. Note 30 June 2021 30 June 2020 30 June 2020
$ $ $
(i) Operating activities excluded from budgeted deficiency
The following non-cash revenue or expenditure has been excluded
from operating activities within the Rate Setting Statement.
Adjustments to operating activities
Less: Profit on asset disposals 4(b) 0 (9,796) (180,048)
Add: Loss on disposal of assets 4(b) 0 83,759 38,392
Add: Depreciation on assets 5 4,922,878 3,078,098 4,869,205
Non cash amounts excluded from operating activities 4,922,878 3,152,061 4,727,549
(ii) Current assets and liabilities excluded from budgeted deficiency
The following current assets and liabilities have been excluded
from the net current assets used in the Rate Setting Statement.
Adjustments to net current assets
Less: Cash - restricted reserves 3 (4,844,341) (5,362,029) (3,764,709)
Less: Cash - restricted 540,777 (149,631)
Less: Current assets not expected to be received at end of year
- current portion of self supporting loans receivable 340 (13,165) (6,353)
Add: Current liabilities not expected to be cleared at end of year
- Current portion of borrowings 281,551 222,197 632,485
- Current portion of contract liability held in reserve (1,619,425) 0 0
Total adjustments to net current assets (5,641,098) (5,152,997) (3,288,208)
| 13
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
2 (a). NET CURRENT ASSETS (CONTINUED)
EXPLANATION OF DIFFERENCE IN NET CURRENT ASSETS AND SURPLUS/(DEFICIT)2020/21 2019/20 2019/20
Budget Actual Budget
Note 30 June 2021 30 June 2020 30 June 2020
$ $ $
(iii) Composition of estimated net current assets
Current assets
Cash and cash equivalents- unrestricted 3 318,608 717,473 16,476
Cash and cash equivalents - restricted
Cash backed reserves 3 4,844,341 5,362,029 3,764,710
Unspent grants, subsidies and contributions 10 1,184,984 3,345,186 752,818
Financial assets - unrestricted (340) 13,165 0
Receivables 2,019,258 2,019,258 719,559
Inventories 28,120 28,120 20,118
8,394,971 11,485,231 5,273,681
Less: current liabilities
Trade and other payables (1,602,723) (1,602,723) (464,319)
Contract liabilities 0 (1,619,425) 0
Long term borrowings (281,551) (222,197) (632,485)
Provisions (869,599) (869,599) (888,669)
(2,753,873) (4,313,944) (1,985,473)
Net current assets 5,641,098 7,171,287 3,288,208
Less: Total adjustments to net current assets 2 (a)(ii) (5,641,098) (5,152,997) (3,288,208)
Closing funding surplus / (deficit) 0 2,018,290 0
| 14
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
2 (b). NET CURRENT ASSETS (CONTINUED)
SIGNIFICANT ACCOUNTING POLICIES
CURRENT AND NON-CURRENT CLASSIFICATION TRADE AND OTHER RECEIVABLESIn the determination of whether an asset or liability is Trade and other receivables include amounts due from
current or non-current, consideration is given to the ratepayers for unpaid rates and service charges and
time when each asset or liability is expected to be other amounts due from third parties for goods sold and
settled. The asset or liability is classified as current if it services performed in the ordinary course of business.
is expected to be settled within the next 12 months,
being the Shire's operational cycle. In the case of Receivables expected to be collected within 12 months
liabilities where the Shire does not have the unconditional of the end of the reporting period are classified as
right to defer settlement beyond 12 months, such as current assets. All other receivables are classified as
vested long service leave, the liability is classified non-current assets.
as current even if not expected to be settled within
the next 12 months. Inventories held for trading are Collectability of trade and other receivables is reviewed
classified as current even if not expected to be on an ongoing basis. Debts that are known to be
realised in the next 12 months except for land held uncollectible are written off when identified. An
for sale where it is held as non-current based on the allowance for doubtful debts is raised when there is
Shire's intentions to release for sale. objective evidence that they will not be collectible.
TRADE AND OTHER PAYABLESTrade and other payables represent liabilities for goods EMPLOYEE BENEFITSand services provided to the Shire prior to the end of the Short-term employee benefits financial year that are unpaid and arise when the Provision is made for the Shire of Gingin's
Shire of Gingin becomes obliged to make obligations for short-term employee benefits. Short term
future payments in respect of the purchase of these employee benefits are benefits (other than termination
goods and services. The amounts are unsecured, are benefits) that are expected to be settled wholly before
recognised as a current liability and are normally paid 12 months after the end of the annual reporting period in
within 30 days of recognition. which the employees render the related service, including
wages, salaries and sick leave. Short-term employee
CONTRACT ASSETS benefits are measured at the (undiscounted) amounts
A contract asset is the right to consideration in exchange expected to be paid when the obligation is settled.
for goods or services the entity has transferred to a
customer when that right is conditioned on something The Shire of Gingin’s obligations for
other than the passage of time. short-term employee benefits such as wages, salaries and
sick leave are recognised as a part of current trade and
PROVISIONS other payables in the statement of financial position. The
Provisions are recognised when the Shire has a legal or Shire of Gingin’s obligations for
constructive obligation, as a result of past events, for employees' annual leave and long service leave
which it is probable that an outflow of economic benefits entitlements are recognised as provisions in the statement
will result and that outflow can be reliably measured. of financial position.
Provisions are measured using the best estimate of the LAND HELD FOR RESALEamounts required to settle the obligation at the end of the Land held for development and sale is valued at the lower
reporting period. of cost and net realisable value. Cost includes the cost of
acquisition, development, borrowing costs and holding
INVENTORIES costs until completion of development. Finance costs and
General holding charges incurred after development is completed
Inventories are measured at the lower of cost and net are expensed.
realisable value.
Gains and losses are recognised in profit or loss at the time
Net realisable value is the estimated selling price in the of signing an unconditional contract of sale if significant
ordinary course of business less the estimated costs of risks and rewards, and effective control over the land, are
completion and the estimated costs necessary to make passed on to the buyer at this point.
the sale.
Land held for sale is classified as current except where it is
Superannuation held as non-current based on Council’s intentions to
The Shire of Gingin contributes to a release for sale.
number of superannuation funds on behalf of employees.
CONTRACT LIABILITIES
All funds to which the Shire of Gingin An entity’s obligation to transfer goods or services to a
contributes are defined contribution plans. customer for which the entity has received consideration
(or the amount is due) from the customer. Grants to acquire
LEASE LIABILITIES or construct recognisable non-financial assets to be
The present value of future lease payments not paid at the controlled by the Shire are recognised as a liability until
reporting date discounted using the incremental borrowing such time as the Shire satisfies its obligations under the
rate where the implicit interest rate in the lease is not agreement.
readily determined.
| 15
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
3. RECONCILIATION OF CASH
For the purposes of the Statement of Cash Flows, cash includes cash and cash equivalents, net of outstanding
bank overdrafts. Estimated cash at the end of the reporting period is as follows:
2020/21 2019/20 2019/20
Note Budget Actual Budget
$ $ $
Cash at bank and on hand 318,608 2,336,898 16,476
- Restricted cash and cash equivalents 6,029,325 7,087,790 4,517,528
6,347,933 9,424,688 4,534,004
- Unrestricted cash and cash equivalents 318,608 717,473 16,476
- Restricted cash and cash equivalents 6,029,325 8,707,215 4,517,528
6,347,933 9,424,688 4,534,004
The following restrictions have been imposed
by regulation or other externally imposed
requirements on cash and cash equivalents:
Asset Renewal Reserve - LSL, Annual, Sick Leave 424,362 421,450 469,230
Asset Renewal Reserve - Office Equipment 10,005 9,936 9,954
Asset Renewal Reserve - Plant & Equipment 1,683,887 1,832,540 625,012
Asset Renewal Reserve - Land & Building 970,940 1,103,924 940,459
Asset Renewal Reserve - Guilderton Caravan Park 35,833 35,587 15,808
Asset Renewal Reserve - Shire Recreation 25,440 74,922 15,400
Asset Renewal Reserve - Redfield Park 31,596 31,379 31,580
Asset Renewal Reserve - Ocean Farm Recreation 31,287 31,072 31,270
Asset Renewal Reserve - Tip Rationalisation 1,117,120 1,102,486 1,134,178
Asset Renewal Reserve - Lancelin Community Sport Club 79,938 79,513 58,477
Asset Renewal Reserve - Community Infrastructure 2,140 2,125 2,133
Asset Renewal Reserve - Staff Housing 33,695 33,464 33,677
Asset Renewal Reserve - Future Infrastructure 383,541 589,137 391,452
Asset Renewal Reserve - Guilderton Country Club 14,557 14,494 6,080
Unspent grants and contributions not held in reserve 1,184,984 1,725,761 752,818
Unspent grants, subsidies and contributions 10 0 1,619,425 0
6,029,325 8,707,215 4,517,528
Reconciliation of net cash provided by
operating activities to net result
Net result 10,081,429 2,569,930 6,565,599
Depreciation 5 4,922,878 3,078,098 4,869,205
(Profit)/loss on sale of asset 4(b) 0 73,963 (141,656)
(Increase)/decrease in receivables 0 (107,334) 1,155,794
(Increase)/decrease in inventories 0 9,396 0
Increase/(decrease) in payables 0 382,913 (108,119)
Increase/(decrease) in contract liabilities 0 1,619,425 (1,187,581)
Increase/(decrease) in employee provisions 0 (20,120) 0
Non-operating grants, subsidies and contributions (12,774,739) (5,669,706) (9,997,448)
Net cash from operating activities 2,229,568 1,936,565 1,155,794
SIGNIFICANT ACCOUNTING POLICES
CASH AND CASH EQUIVALENTS FINANCIAL ASSETS AT AMORTISED COST
Cash and cash equivalents include cash on hand, cash The Shire classifies financial assets at amortised cost
at bank, deposits available on demand with banks, other if both of the following criteria are met:
short term highly liquid investments that are readily - the asset is held within a business model whose
convertible to known amounts of cash and which are objective is to collect the contractual cashflows, and
subject to an insignificant risk of changes in value and - the contractual terms give rise to cash flows that
bank overdrafts. are solely payments of principal and interest.
Bank overdrafts are shown as short term borrowings in
current liabilities in Note 2 - Net Current Assets.
| 16
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
4. FIXED ASSETS
(a) Acquisition of Assets
The following assets are budgeted to be acquired during the year.
Law, order, public
safety Health
Education and
welfare Housing
Community
amenities
Recreation and
culture Transport
Economic
services
Other property
and services
2020/21 Budget
total
2019/20 Actual
total
2019/20 Budget
total
Asset class $ $ $ $ $ $ $ $ $ $ $ $
Property, Plant and Equipment
Land - freehold land 0 0 0 0 15,000 0 0 0 0 15,000 0 19,030
Land - vested in and under the control of council 0 0 0 0 0 0 0 0 0 0 0 0
Buildings - non-specialised 0 0 0 0 0 0 0 0 0 0 0 0
Buildings - specialised 2,401,500 50,000 32,000 0 269,325 410,500 33,500 90,300 240,960 3,528,085 422,283 3,163,779
Furniture and equipment 0 0 0 0 0 0 0 0 101,400 101,400 0 48,000
Plant and equipment 1,650,000 0 0 0 43,000 8,000 1,237,183 0 0 2,938,183 638,867 2,083,500
Tools 0 0 0 0 0 0 0 0 0 0 0 0
4,051,500 50,000 32,000 0 327,325 418,500 1,270,683 90,300 342,360 6,582,668 1,061,150 5,314,309
Infrastructure
Infrastructure - roads 0 0 0 0 0 0 9,643,214 0 0 9,643,214 4,322,545 6,983,509
Infrastructure - footpaths 0 0 0 0 0 0 105,063 0 0 105,063 8,806 105,063
Infrastructure - Parks and ovals 0 0 0 0 0 2,204,390 0 0 0 2,204,390 98,806 980,136
Infrastructure - Other 0 0 0 0 100,000 0 10,000 0 0 110,000 6,709 990,000
Infrastructure - Bridges 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 100,000 2,204,390 9,758,277 0 0 12,062,667 4,436,866 9,058,708
Total acquisitions 4,051,500 50,000 32,000 0 427,325 2,622,890 11,028,960 90,300 342,360 18,645,335 5,498,016 14,373,017
A detailed breakdown of acquisitions on an individual asset basis can be found in the
supplementary information attached to this budget document.
SIGNIFICANT ACCOUNTING POLICIES
RECOGNITION OF ASSETS
Assets for which the fair value as at the date of acquisition is under $5,000 are
not recognised as an asset in accordance with Financial Management Regulation
17A (5) . These assets are expensed immediately.
Where multiple individual low value assets are purchased together
as part of a larger asset or collectively forming a larger asset exceeding the
threshold, the individual assets are recognised as one asset and capitalised.
Reporting program
| 17
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
4. FIXED ASSETS
(b) Disposals of Assets
The following assets are budgeted to be disposed of during the year.
2020/21
Budget
Net Book
Value
2020/21
Budget
Sale
Proceeds
2020/21
Budget
Profit
2020/21
Budget
Loss
2019/20
Actual
Net Book
Value
2019/20
Actual
Sale
Proceeds
2019/20
Actual
Profit
2019/20
Actual
Loss
2019/20
Budget
Net Book
Value
2019/20
Budget
Sale
Proceeds
2019/20
Budget
Profit
2019/20
Budget
Loss
$ $ $ $ $ $ $ $ $ $ $ $
By Program
Law, order, public safety 0 0 0 0 18,990 22,727 3,737 0 18,990 14,000 0 (4,990)
Health 0 0 0 0 4,334 0 0 (4,334) 4,387 19,091 14,704 0
Education and welfare 0 0 0 0 0 0 0 0 2,700 44,000 41,300 0
Recreation and culture 0 0 0 0 590 0 0 (590) 0 0 0 0
Transport 253,545 253,545 0 0 88,097 73,227 6,059 (20,929) 164,358 255,000 124,044 (33,402)
Economic services 0 0 0 0 21,000 19,091 0 (1,909) 0 0 0
Other property and services 0 0 0 0 242,452 186,455 0 (55,997) 0 0 0
253,545 253,545 0 0 375,463 301,500 9,796 (83,759) 190,435 332,091 180,048 (38,392)
By Class
Property, Plant and Equipment
Land - freehold land 0 0 0 0 147,000 134,400 0 (12,600) 0 0 0 0
Buildings - specialised 0 0 0 0 57,951 25,600 0 (32,351) 0 0 0 0
Plant and equipment 253,545 253,545 0 0 169,922 141,500 9,796 (38,218) 190,435 332,091 180,048 (38,392)
Infrastructure
Infrastructure - Other 0 0 0 0 590 0 0 (590) 0 0 0 0
253,545 253,545 0 0 375,463 301,500 9,796 (83,759) 190,435 332,091 180,048 (38,392)
A detailed breakdown of disposals on an individual asset basis can be found in
the supplementary information attached to this budget document
SIGNIFICANT ACCOUNTING POLICIES
GAINS AND LOSSES ON DISPOSAL
Gains and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains and losses
are included in profit or loss in the period which they arise.
| 18
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
5. ASSET DEPRECIATION 2020/21 2019/20 2019/20
Budget Actual Budget
$ $ $
By Program
Governance 0 0 1,667
Law, order, public safety 175,670 175,906 179,220
Health 16,625 16,630 16,625
Education and welfare 64,940 65,025 64,990
Community amenities 226,364 226,489 226,364
Recreation and culture 1,655,654 1,655,876 1,621,554
Transport 1,944,518 154,480 1,944,518
Economic services 69,265 68,968 68,735
Other property and services 769,842 714,724 745,532
4,922,878 3,078,098 4,869,205
By Class
Buildings - non-specialised 32,297 32,297 32,297
Buildings - specialised 807,485 807,740 804,555
Furniture and equipment 67,827 42,886 47,862
Plant and equipment 739,960 679,958 743,147
Tools 1,790 1,027 1,790
Infrastructure - roads 1,788,880 0 1,787,514
Infrastructure - footpaths 11,120 0 12,486
Infrastructure - Parks and ovals 993,946 774,577 950,547
Infrastructure - Other 360,707 583,037 372,779
Infrastructure - Bridges 116,228 125,336 116,228
Right of use - plant and equipment 2,638 31,240 0
4,922,878 3,078,098 4,869,205
SIGNIFICANT ACCOUNTING POLICIES
DEPRECIATION AMORTISATION
The depreciable amount of all fixed assets including buildings The depreciable amount of all intangible assets with a finite useful
but excluding freehold land, are depreciated on a straight-line life, are depreciated on a straight-line basis over the individual
basis over the individual asset’s useful life from the time the asset’s useful life from the time the asset is held for use.
asset is held ready for use. Leasehold improvements are
depreciated over the shorter of either the unexpired period of The assets residual value of intangible assets is considered to be
the lease or the estimated useful life of the improvements. zero and useful live and amortisation method are reviewed at the
end of each financial year.
The assets residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period. Amortisation is included within Depreciation on non-current
assets in the Statement of Comprehensive Income.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Major depreciation periods used for each class of depreciable
asset are:
Buildings - non specialised 2 to 50 years
Buildings - specialised 2 to 50 years
Furniture and equipment 4 to 30 years
Plant and equipment 5 to 15 years
Tools 4 to 10 years
Infrastructure - Footpaths 40 years
Infrastructure - Parks & ovals 5 to 25 years
Infrastructure - Bridges 50 to 100 years
Infrastructure - Other 5 to 25 years
Infrastructure - Car parks (sealed) 40 years
Sealed roads and streets
- formation not depreciated
- pavement 50 years
Seal
- bituminous seals 25 years
- asphalt surfaces 25 years
Gravel roads
- formation not depreciated
- pavement 50 years
Footpaths - slab 12 years
Formed roads - unsealed (reducing balance)
- formation not depreciated
- pavement 50 years
Sewerage piping 80 years
Water supply piping and drainage systems 85 years
| 19
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
6. INFORMATION ON BORROWINGS
(a) Borrowing repayments
Movement in borrowings and interest between the beginning and the end of the current financial year.
2020/21 2020/21 Budget 2020/21 2019/20 2019/20 Actual 2019/20 2019/20 2019/20 Budget 2019/20
Budget Budget Budget Principal Budget Actual Actual Actual Principal Actual Budget Budget Budget Principal Budget
Loan Interest Principal New Principal outstanding Interest Principal New Principal outstanding Interest Principal New Principal outstanding Interest
Purpose Number Institution Rate 1 July 2020 Loans Repayments 30 June 2021 Repayments 1 July 2019 Loans Repayments 30 June 2020 Repayments 1 July 2019 Loans Repayments 30 June 2020 Repayments
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Health
L100 GG Medical Centre 100 Western Australian Treasury 6.61% 131,258 0 (29,686) 101,572 (8,070) 159,075 0 (27,817) 131,258 (9,154) 159,075 0 (27,817) 131,258 (9,910)
Community amenities
L111 Tip Rationalisation Site 111 Western Australian Treasury 6.49% 435,111 0 (18,822) 416,289 (27,938) 452,768 0 (17,657) 435,111 (28,691) 452,769 0 (17,657) 435,112 (29,103)
L127 Seabird Sea Wall 127 Western Australian Treasury 2.51% 145,020 0 (20,809) 124,211 (3,510) 165,317 0 (20,297) 145,020 (3,806) 165,316 0 (20,297) 145,019 (4,023)
Lancelin Caravan Park Assets 128 Western Australian Treasury 2.52% 103,130 0 (40,479) 62,651 (2,345) 142,607 0 (39,477) 103,130 (2,977) 142,607 0 (39,477) 103,130 (3,347)
Grace Darling Park Sea Wall Western Australian Treasury 0 0 0 0 0 0 0 0 0 0 0 167,600 0 167,600 0
Recreation and culture
L114 Gu C/Club 114 Western Australian Treasury 7.14% 370,175 0 (35,734) 334,441 (25,804) 403,488 0 (33,313) 370,175 (27,953) 403,489 0 (33,313) 370,176 (28,225)
L120 Regional Hardcourt Facility 120 Western Australian Treasury 6.68% 264,331 0 (22,260) 242,071 (17,292) 285,175 0 (20,844) 264,331 (18,662) 285,175 0 (9,988) 275,187 (18,707)
L124A Regional Hardcourt Facility 124A Western Australian Treasury 4.13% 254,467 0 (21,026) 233,441 (10,295) 274,651 0 (20,184) 254,467 (11,075) 274,651 0 (20,183) 254,468 (11,136)
L126 Swimming Pool Tiling 126 Western Australian Treasury 3.10% 95,471 0 (14,714) 80,757 (2,846) 109,739 0 (14,268) 95,471 (3,113) 109,738 0 (14,268) 95,470 (3,292)
LA Cunliffe Car Park 131 Western Australian Treasury 1.90% 0 250,000 0 250,000 0 0 0 0 0 0 0 250,000 0 250,000 0
GG Outdoor Activity Space 132 Western Australian Treasury 1.90% 0 177,000 0 177,000 0 0 0 0 0 0 0 0 0 0 0
Economic services
GU Caravan Park Waste Water 133 Western Australian Treasury 1.90% 0 100,000 0 100,000 0 0 0 0 0 0 0 400,000 0 400,000 0
Other property and services
L123 Lot 44 Weld Street GG 123 Western Australian Treasury 6.96% 169,628 0 (16,485) 153,143 (11,524) 185,023 0 (15,395) 169,628 (12,393) 185,023 0 (15,395) 169,628 (12,614)
1,968,591 527,000 (220,015) 2,275,576 (109,624) 2,177,843 0 (209,252) 1,968,591 (117,824) 2,177,843 817,600 (198,395) 2,797,048 (120,357)
Self Supporting Loans
Recreation and culture
GG Equestrian Centre 0 Western Australian Treasury 0 0 0 0 0 0 0 0 0 0 0 0 12,840 (12,840) 0 (30)
LP Country Club Cool Room 130 Western Australian Treasury 2.16% 21,435 0 (2,182) 19,253 (451) 23,571 0 (2,136) 21,435 (493) 21,428 0 (2,136) 19,292 (498)
21,435 0 (2,182) 19,253 (451) 23,571 0 (2,136) 21,435 (493) 21,428 12,840 (14,976) 19,292 (528)
1,990,026 527,000 (222,197) 2,294,829 (110,075) 2,201,414 0 (211,388) 1,990,026 (118,317) 2,199,271 830,440 (213,371) 2,816,340 (120,885)
All borrowing repayments, other than self supporting loans, will be financed by general purpose revenue.
The self supporting loan(s) repayment will be fully reimbursed.
| 20
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
6. INFORMATION ON BORROWINGS
(b) New borrowings - 2020/21
Amount Total Amount
Loan Term Interest borrowed interest & used Balance
Particulars/Purpose Institution type (years) rate budget charges budget unspent
% $ $ $ $
LA Cunliffe Car Park WA Treasury Corp 131 Debenture 10 1.9% 250,000 25,684 250,000 0
GG Outdoor Activity Space WA Treasury Corp 132 Debenture 10 1.9% 177,000 18,184 177,000 0
GU Caravan Park Waste WaterWA Treasury Corp 133 Debenture 10 1.9% 100,000 10,273 100,000 0
527,000 54,141 527,000 0
(c) Unspent borrowings
The Shire had no unspent borrowing funds as at 30 June 2020 nor is it expected to have unspent borrowing funds
as at 30 June 2021.
(d) Credit Facilities
2020/21 2019/20 2019/20
Budget Actual Budget
$ $ $
Undrawn borrowing facilities
credit standby arrangements
Bank overdraft limit 500,000 500,000 500,000
Bank overdraft at balance date 0 0 0
Credit card limit 38,000 38,000 38,000
Credit card balance at balance date 0 0 0
Total amount of credit unused 538,000 538,000 538,000
Loan facilities
Loan facilities in use at balance date 2,294,829 1,990,026 2,816,340
SIGNIFICANT ACCOUNTING POLICIES
BORROWING COSTS
Borrowing costs are recognised as an expense when incurred except
where they are directly attributable to the acquisition, construction or
production of a qualifying asset. Where this is the case, they are
capitalised as part of the cost of the particular asset until such time as
the asset is substantially ready for its intended use or sale.
| 21
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
7. LEASE LIABILITIES 2020/21 Budget 2020/21 2019/20 Actual 2019/20 2019/20 Budget 2019/20
Budget 2020/21 Budget Lease Budget 2019/20 Actual Lease Actual 2019/20 Budget Lease Budget
Lease Lease Budget Lease Principal Lease Actual Actual Lease Principal Lease Budget Budget Lease Principal Lease
Lease Interest Lease Principal New Principal outstanding Interest Principal New Principal outstanding Interest Principal New Principal outstanding Interest
Purpose Number Institution Rate Term 1 July 2020 Leases Repayments 30 June 2021 Repayments 1 July 2019 Leases repayments 30 June 2020 repayments 1 July 2019 Leases repayments 30 June 2020 repayments
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Transport
Street Sweeper 03 T-Quip 0 0 0 0 0 23,759 0 (23,759) 0 0 0 0 0 0 0
Other property and services
Lanceline office lease 01 L Hughes 2.1% 36 0 0 (7,092) (7,092) 0 5,219 0 (5,219) 0 (408) 0 0 0 0 0
Franking machine 02 Advanced Office Solutions3.1% 60 2,678 0 (488) 2,190 0 4,899 0 (2,221) 2,678 0 0 0 0 0 0
2,678 0 (7,580) (4,902) 0 33,877 0 (31,199) 2,678 (408) 0 0 0 0 0
SIGNIFICANT ACCOUNTING POLICIES
LEASES
At the inception of a contract, the Shire assesses whether the contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
At the commencement date, a right-of-use asset is recognised at cost and a lease liability.
at the present value of the lease payments that are not paid at that date. The lease payments
are discounted using the interest rate implicit in the lease, if that rate can be readily determined.
If that rate cannot be readily determined, the Shire uses its incremental borrowing rate.
| 22
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
8. CASH BACKED RESERVES
(a) Cash Backed Reserves - Movement
2020/21 2020/21 2020/21 2019/20 2019/20 2019/20 2019/20 2019/20 2019/20
Budget 2020/21 Budget Budget Actual 2019/20 Actual Actual Budget 2019/20 Budget Budget
Opening Budget Transfer Closing Opening Actual Transfer Closing Opening Budget Transfer Closing
Balance Transfer to (from) Balance Balance Transfer to (from) Balance Balance Transfer to (from) Balance
$ $ $ $ $ $ $ $ $ $ $ $
(a) Asset Renewal Reserve - LSL, Annual, Sick Leave 421,450 2,912 0 424,362 416,650 4,800 0 421,450 460,968 8,262 0 469,230
(b) Asset Renewal Reserve - Office Equipment 9,936 69 0 10,005 9,903 33 0 9,936 9,903 51 0 9,954
(c) Asset Renewal Reserve - Plant & Equipment 1,832,540 8,985 (157,638) 1,683,887 1,285,433 761,646 (214,539) 1,832,540 637,351 11,252 (23,591) 625,012
(d) Asset Renewal Reserve - Land & Building 1,103,924 4,976 (137,960) 970,940 711,861 392,063 0 1,103,924 711,861 233,090 (4,492) 940,459
(e) Asset Renewal Reserve - Guilderton Caravan Park 35,587 246 0 35,833 35,187 400 0 35,587 35,187 621 (20,000) 15,808
(f) Asset Renewal Reserve - Shire Recreation 74,922 518 (50,000) 25,440 74,092 830 0 74,922 74,092 1,308 (60,000) 15,400
(g) Asset Renewal Reserve - Redfield Park 31,379 217 0 31,596 31,031 348 0 31,379 31,032 548 0 31,580
(h) Asset Renewal Reserve - Ocean Farm Recreation 31,072 215 0 31,287 30,728 344 0 31,072 30,728 542 0 31,270
(i) Asset Renewal Reserve - Tip Rationalisation 1,102,486 24,634 (10,000) 1,117,120 1,090,291 12,195 0 1,102,486 1,090,292 43,886 0 1,134,178
(j) Asset Renewal Reserve - Lancelin Community Sport Club 79,513 425 0 79,938 60,768 18,745 0 79,513 57,463 1,014 0 58,477
(k) Asset Renewal Reserve - Community Infrastructure 2,125 15 0 2,140 2,097 28 0 2,125 2,096 37 0 2,133
(l) Asset Renewal Reserve - Staff Housing 33,464 231 0 33,695 33,093 371 0 33,464 33,093 584 0 33,677
(m) Asset Renewal Reserve - Future Infrastructure 589,137 3,507 (209,103) 383,541 487,449 101,688 0 589,137 501,828 104,624 (215,000) 391,452
(n) Asset Renewal Reserve - Guilderton Country Club 14,494 63 0 14,557 23,379 5,494 (14,379) 14,494 5,975 105 0 6,080
5,362,029 47,013 (564,701) 4,844,341 4,291,962 1,298,985 (228,918) 5,362,029 3,681,869 405,924 (323,083) 3,764,710
8. CASH BACKED RESERVES (CONTINUED)
(b) Cash Backed Reserves - Purposes
In accordance with Council resolutions in relation to each reserve account, the purpose for which the reserves are set aside are as follows:
Anticipated
Reserve name date of use Purpose of the reserve
(a) Asset Renewal Reserve - LSL, Annual, Sick Leave As required
(b) Asset Renewal Reserve - Office Equipment As required
(c) Asset Renewal Reserve - Plant & Equipment 2020/21
(d) Asset Renewal Reserve - Land & Building 2020/21
(e) Asset Renewal Reserve - Guilderton Caravan Park As required
(f) Asset Renewal Reserve - Shire Recreation 2020/21
(g) Asset Renewal Reserve - Redfield Park As required
(h) Asset Renewal Reserve - Ocean Farm Recreation As required
(i) Asset Renewal Reserve - Tip Rationalisation 2020/21
(j) Asset Renewal Reserve - Lancelin Community Sport Club As required
(k) Asset Renewal Reserve - Community Infrastructure As required
(l) Asset Renewal Reserve - Staff Housing As required
(m) Asset Renewal Reserve - Future Infrastructure As required
(n) Asset Renewal Reserve - Guilderton Country Club As required
Used to fund annual leave, long service leave, sick leave, redundancy/retirement and staff contingency.
Used for the acquisition and/or replacement of major items of office equipment (including computer system).
Used for the purchase of major plant and equipment.
Used for the replacement and/or acquisition of land and buildings.
Used for the development of Guilderton Caravan Park facilities.
Used to assist in the financing of community facilities.
To be used to fund Staff housing infrastructure additions and/or replacement.
To used to fund future infrastructure construction, purchase, additions and/or renewals.
To be used to fund the development of the Guilderton Country Club and are to be spent upon request from the Club, and approval from Council.
Used for the development of Shire Recreation facilities.
Used for the development of Public Open Space within the Redfield Park subdivision.
Used for the development of recreation and community facilities within the Ocean Farm subdivision.
Used for rationalisation of rubbish tip facilities within the Shire.
Used in developing building and other associated infrastructure at the Lancelin Community Sporting Club and are to be spent upon request from the Club, and approval from Council.
| 23
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
9. FEES & CHARGES REVENUE2020/21 2019/20 2019/20
Budget Actual Budget
$ $ $
General purpose funding 0 19,630 22,000
Law, order, public safety 193,650 201,632 145,050
Health 723,000 394,970 635,341
Education and welfare 103,787 95,711 103,320
Housing 12,000 23,553 36,000
Community amenities 1,615,378 1,596,415 1,659,072
Recreation and culture 92,917 101,147 107,350
Transport 0 55 85,000
Economic services 1,428,651 1,352,719 1,624,687
Other property and services 22,050 25,055 27,050
4,191,433 3,810,887 4,444,870
10. GRANT REVENUE
Increase Liability Total Current
Liability in Reduction Liability Liability 2020/21 2019/20 2019/20
1 July 2020 Liability (As revenue) 30 June 2021 30 June 2021 Budget Actual Budget
By Program: $ $ $ $ $ $ $ $
(a) Operating grants, subsidies
and contributions
Governance 0 0 0 0 2,000 0 2,050
General purpose funding 0 0 0 0 0 956,033 1,792,586 1,030,033
Law, order, public safety 36,198 0 (36,198) 0 0 489,668 756,501 331,555
Health 0 0 0 0 0 0 54,503 0
Education and welfare 0 0 0 0 0 5,000 680 0
Community amenities 34,932 0 (34,932) 0 0 300,702 128,399 189,038
Recreation and culture 0 0 0 0 0 164,751 59,319 132,846
Transport 0 0 0 0 0 207,514 217,798 207,514
Economic services 0 0 0 0 0 0 1,000 1,000
Other property and services 0 0 0 0 0 95,000 1,124,781 95,000
71,130 0 (71,130) 0 0 2,220,668 4,135,567 1,989,036
(b) Non-operating grants,
subsidies and contributions
Law, order, public safety 175,000 0 (175,000) 0 0 4,051,500 172,931 3,557,931
Education and welfare 0 0 0 0 0 2,000 0 0
Community amenities 0 0 0 0 0 0 27,375 171,705
Recreation and culture 0 0 0 0 0 1,372,862 0 1,074,690
Transport 1,373,295 (1,373,295) 0 0 7,348,377 3,849,975 5,193,122
1,548,295 0 (1,548,295) 0 0 12,774,739 4,050,281 9,997,448
Total 1,619,425 0 (1,619,425) 0 0 14,995,407 8,185,848 11,986,484
(c) Unspent grants,subsidies and contributions Budget
were restricted as follows: Closing Actual
Balance Balance
30 June 2021 30 June 2020
Unspent grants, subsidies and contributions 0 1,619,425
0 1,619,425
Unspent grants, subsidies and contributions liability and contributions revenue
Grants, subsidies
| 24
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
11. REVENUE RECOGNITION
SIGNIFICANT ACCOUNTING POLICIES
Recognition of revenue is dependant on the source of revenue and the associated terms and conditions associated with each source
of revenue and recognised as follows:
Revenue Category
Nature of goods and
services
When obligations
typically satisfied Payment terms
Returns/Refunds/
Warranties
Determination of
transaction price
Allocating
transaction price
Measuring
obligations for
returns Revenue recognition
Rates General Rates Over time Payment dates
adopted by Council
during the year
None Adopted by council
annually
When taxable event
occurs
Not applicable When rates notice is
issued
Specified area rates Rates charge for
specific defined
purpose
Over time Payment dates
adopted by Council
during the year
Refund in event
monies are unspent
Adopted by council
annually
When taxable event
occurs
Not applicable When rates notice is
issued
Service charges Charge for specific
service
Over time Payment dates
adopted by Council
during the year
Refund in event
monies are unspent
Adopted by council
annually
When taxable event
occurs
Not applicable When rates notice is
issued
Grant contracts with
customers
Community events,
minor facilities,
research, design,
planning evaluation
and services
Over time Fixed terms transfer of
funds based on agreed
milestones and
reporting
Contract obligation if
project not complete
Set by mutual
agreement with the
customer
Based on the progress
of works to match
performance
obligations
Returns limited to
repayment of
transaction price of
terms breached
Output method based
on project milestones
and/or completion date
matched to
performance
obligations as inputs
are shared
Grants, subsidies or
contributions for the
construction of non-
financial assets
Construction or
acquisition of
recognisable non-
financial assets to be
controlled by the local
government
Over time Fixed terms transfer of
funds based on agreed
milestones and
reporting
Contract obligation if
project not complete
Set by mutual
agreement with the
customer
Based on the progress
of works to match
performance
obligations
Returns limited to
repayment of
transaction price of
terms breached
Output method based
on project milestones
and/or completion date
matched to
performance
obligations as inputs
are shared
Grants with no contract
commitments
General appropriations
and contributions with
no reciprocal
commitment
No obligations Not applicable Not applicable Cash received On receipt of funds Not applicable When assets are
controlled
Licences/
Registrations/
Approvals
Building, planning,
development and
animal management,
having the same nature
as a licence regardless
of naming.
Single point in time Full payment prior to
issue
None Set by State legislation
or limited by legislation
to the cost of provision
Based on timing of
issue of the associated
rights
No refunds On payment and issue
of the licence,
registration or approval
Pool inspections Compliance safety
check
Single point in time Equal proportion based
on an equal annually
fee
None Set by State legislation Apportioned equally
across the inspection
cycle
No refunds After inspection
complete based on a 4
year cycleOther inspections Regulatory Food,
Health and Safety
Single point in time Full payment prior to
inspection
None Set by State legislation
or limited by legislation
to the cost of provision
Applied fully on timing
of inspection
Not applicable Revenue recognised
after inspection event
occurs
Waste management
collections
Kerbside collection
service
Over time Payment on an annual
basis in advance
None Adopted by council
annually
Apportioned equally
across the collection
period
Not applicable Output method based
on regular weekly and
fortnightly period as
proportionate to
collection serviceWaste management
entry fees
Waste treatment,
recycling and disposal
service at disposal
sites
Single point in time Payment in advance at
gate or on normal
trading terms if credit
provided
None Adopted by council
annually
Based on timing of
entry to facility
Not applicable On entry to facility
Airport landing charges Permission to use
facilities and runway
Single point in time Monthly in arrears None Adopted by council
annually
Applied fully on timing
of landing/take-off
Not applicable On landing/departure
eventProperty hire and entry Use of halls and
facilities
Single point in time In full in advance Refund if event
cancelled within 7 days
Adopted by council
annually
Based on timing of
entry to facility
Returns limited to
repayment of
transaction price
On entry or at
conclusion of hire
Memberships Gym and pool
membership
Over time Payment in full in
advance
Refund for unused
portion on application
Adopted by council
annually
Apportioned equally
across the access
period
Returns limited to
repayment of
transaction price
Output method Over 12
months matched to
access rightFees and charges for
other goods and
services
Cemetery services,
library fees,
reinstatements and
private works
Single point in time Payment in full in
advance
None Adopted by council
annually
Applied fully based on
timing of provision
Not applicable Output method based
on provision of service
or completion of works
Sale of stock Aviation fuel, kiosk and
visitor centre stock
Single point in time In full in advance, on
15 day credit
Refund for faulty goods Adopted by council
annually, set by mutual
agreement
Applied fully based on
timing of provision
Returns limited to
repayment of
transaction price
Output method based
on goods
Commissions Commissions on
licencing and ticket
sales
Over time Payment in full on sale None Set by mutual
agreement with the
customer
On receipt of funds Not applicable When assets are
controlled
Reimbursements Insurance claims Single point in time Payment in arrears for
claimable event
None Set by mutual
agreement with the
customer
When claim is agreed Not applicable When claim is agreed
| 25
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
12. OTHER INFORMATION2020/21 2019/20 2019/20
Budget Actual Budget
$ $ $
The net result includes as revenues
(a) Interest earnings
Investments
- Reserve funds 30,000 48,183 65,000
- Other funds 30,000 48,573 67,000
Other interest revenue (refer note 1b) 141,000 186,378 139,000
201,000 283,134 271,000
(b) Other revenue
Reimbursements and recoveries 108,993 209,174 125,179
Other 0 174,615 0
108,993 383,789 125,179
The net result includes as expenses
(c) Auditors remuneration
Audit services 65,000 40,489 50,000
65,000 40,489 50,000
(d) Interest expenses (finance costs)
Borrowings (refer Note 6(a)) 110,075 118,317 120,885
Interest expense on lease liabilities 0 408 0
110,075 118,725 120,885
(e) Elected members remuneration
Meeting fees 69,125 79,625 79,000
Mayor/President’s allowance 14,000 16,000 16,000
Deputy Mayor/President's allowance 3,500 4,000 4,000
Travelling expenses 15,000 12,740 15,000
Telecommunications allowance 16,226 18,180 18,544
117,851 130,545 132,544
(f) Low Value lease expenses
Office equipment 7,800 0 0
7,800 0 0
| 26
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
13. MAJOR LAND TRANSACTIONS
It is not anticipated any land transactions or major land transactions will occur in 2020/21.
| 27
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
14. TRADING UNDERTAKINGS AND MAJOR TRADING UNDERTAKINGS
It is not anticipated any trading undertakings or major trading undertakings will occur in 2020/21.
| 28
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
15. INTERESTS IN JOINT ARRANGEMENTS
It is not anticipated the Shire will be party to any joint venture arrangements during 2020/21.
SIGNIFICANT ACCOUNTING POLICIES
INTERESTS IN JOINT ARRANGEMENTS
Joint arrangements represent the contractual sharing
of control between parties in a business venture where
unanimous decisions about relevant activities are required.
Separate joint venture entities providing joint venturers
with an interest to net assets are classified as a joint
venture and accounted for using the equity method.
Joint venture operations represent arrangements whereby
joint operators maintain direct interests in each asset
and exposure to each liability of the arrangement. The
Shire of Gingin’s interests in the assets
liabilities revenue and expenses of joint operations are
included in the respective line items of the financial
statements.
| 29
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
16. TRUST FUNDS
Funds held at balance date over which the local government has no control and which are not included in
the financial statements are as follows:
Estimated Estimated Estimated
Balance amounts amounts balance
Detail 30 June 2020 received paid 30 June 2021
$ $ $ $
Bonds, Tenders etc 6,067 0 0 6,067
Community Groups 1,569 0 0 1,569
D Wedge Trust 6,405 0 0 6,405
Landscaping Bonds 13,113 0 0 13,113
Other Bonds/Trusts 4,546 0 0 4,546
Public Open Space 46,218 0 0 46,218
77,918 0 0 77,918
| 30
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
17. SIGNIFICANT ACCOUNTING POLICIES - OTHER
INFORMATION
GOODS AND SERVICES TAX (GST) ROUNDING OFF FIGURES
Revenues, expenses and assets are recognised net of the All figures shown in this statement are rounded to the
amount of GST, except where the amount of GST incurred nearest dollar.
is not recoverable from the Australian Taxation Office
(ATO). COMPARATIVE FIGURES
Where required, comparative figures have been
Receivables and payables are stated inclusive of GST adjusted to conform with changes in presentation for
receivable or payable. The net amount of GST recoverable the current financial year.
from, or payable to, the ATO is included with receivables or
payables in the statement of financial position. BUDGET COMPARATIVE FIGURES
Unless otherwise stated, the budget comparative
Cash flows are presented on a gross basis. The GST figures shown in the budget relate to the original
components of cash flows arising from investing or budget estimate for the relevant item of disclosure.
financing activities which are recoverable from, or payable
to, the ATO are presented as operating cash flows.
CRITICAL ACCOUNTING ESTIMATES
The preparation of a budget in conformity with Australian
Accounting Standards requires management to make
judgements, estimates and assumptions that effect the
application of policies and reported amounts of assets and
liabilities, income and expenses.
The estimates and associated assumptions are based on
historical experience and various other factors that are
believed to be reasonable under the circumstances; the
results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may
differ from these estimates.
| 31
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
18. BUDGET RATIOS
2020/21 2019/20 2018/19 2017/18
Budget Actual Actual Actual
Operating Surplus (0.0527) (0.0139) 0.0687 (0.1189)
Funds After Operations 0.8711 0.7910 0.7721 0.803
PPE 0.1363 0.0657 0.0295 0.003
Infrastructure 0.0651 0.0823 0.0304 0.2490
Cash Reserves 0.6278 0.8242 0.4191 0.4424
Borrowings 0.2369 0.1863 0.2130 0.2439
Debt Servicing 0.0405 0.0321 0.0313 0.0327
Average Rates (UV) 3,625 3,608 3,329 3,402
Average Rates (GRV) 1,466 1,469 1,374 1,354
The ratios are calculated as follows:
OPERATIONS
Operating Surplus
Funds After Operations
ASSET RATIOS
PPE
Infrastructure
FINANCING RATIOS
Cash Reserves
Borrowings
Debt Servicing
RATES RATIOS
Average Rates
Number of properties per category
General funds
Principal and interest due
General funds
Rate revenue per category
Principal outstanding
Closing WDV value of PPE less Opening WDV value of PPE
Opening WDV value of PPE
Closing WDV Infrastructure less Opening WDV infrastructure
Opening WDV Infrastructure
Discretionary Reserve Balance
General Funds
Adjusted underlying surplus (or deficit)
Adjusted underlying revenue
Funds remaining after operations
General funds
| 32
SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
0
ANNUAL BUDGET
CHECKLIST
FOR THE YEAR ENDED 30 JUNE 2021
NOTE: This Cross Check should also be completed manually against the printed Annual Budget
as this is an initial cross check to aid completion of the Budget Total imbalance - 1 -
2020/21 2019/20 2019/20
Budget Actual Budget
Table of Contents Check page numbers are correct. Check net assets = net liabilities + equity.
- -
Movement in equity = comprehensive income - 1-
Other comprehensive income agrees to movement in revaluation surplus
- - Check all note numbers are relevant (not changed/deleted) and adjacent
totals tie up to totals contained in the relevant note.
Check income is positive. - - -
Check expenses are negative. - - -
Rates Note Rates revenue - - -
Other information note Interest earnings - - -
Other information note Other revenue - - -
Fees and charges note Fees and charges revenue - - -
Fees and charges note Operating Grants Revenue - - -
Fees and charges note Non Operating Grants Revenue - 0- -
SARS, Charges, Discounts Note Service charges - - -
Rate Setting Statement Depreciation expense - - -
Asset depreciation note Depreciation expense - - -
SOCI by Program Interest expense - - -
Other information note Interest expense - - -
Borrowings Note Interest repayments - - -
SOCI By Program - Non-Operating Grants, Subsidies and Contributions Non-Operating Grants, Subsidies and Contributions agrees to - - -
SOCI By Program - Profit on Asset Disposals less Loss on Asset Disposals Profit on Asset Disposals less Loss on Asset Disposals agrees to - - -
Rate Setting Statement; (RP) - Profit on Asset Disposals less Loss on Asset
Disposals
Profit on Asset Disposals less Loss on Asset Disposals agrees to - - -
Asset Disposals Note Profit on Asset Disposals less Loss on Asset Disposals agrees to - - -
SOCI By Program - Net Result Net Result to agrees to - - -
Rate setting statement (RP) revenue less expenses plus rates Net Result to agrees to
- - -
Rate setting statement (NT) revenue less expenses plus rates Net Result to agrees to
- - -
Reconciliation of Cash Note - Net Result Net Result to agrees to - - -
Rate Setting Statement (RP) - Revenue items Revenue items agree with - - -
Rate Setting Statement (NT) - Revenue items Revenue items agree with - - -
SOCI By Program - Revenue items Revenue items agree with
- - -
Rate Setting Statement (RP) - Expenditure items Expenditure items agree with - - -
Rate Setting Statement (NT) - Expenditure items Expenditure items agree with - - -
SOCI By Program - Expenditure items Expenditure items agree with - - -
SOCI By Program - Other Comprehensive Income Other Comprehensive Income agrees with - - -
Statement of Comprehensive
Income by Program
Check Note numbers are relevant (i.e. not changed/deleted) and tie up
to totals contained in the relevant note.
Check Note numbers are relevant (i.e. not changed/deleted) and tie up
to totals contained in the relevant note. Reconciliation of Cash Note - Net cash from Operating Activates Cash from Operating Activities agrees to - - -
Asset Disposals By Program - Proceeds from Sale of Fixed Assets Proceeds from Sale of Fixed Assets agrees to - - -
Rate Setting Statement (RP) - Proceeds from Sale of Fixed Assets Proceeds from Sale of Fixed Assets agrees to - - -
Rate Setting Statement (NT) - Proceeds from Sale of Fixed Assets Proceeds from Sale of Fixed Assets agrees to - - -
Rate Setting Statement (RP) - Payments for Purchases of Infrastructure Payments for Purchases of Infrastructure agrees to - - -
Rate Setting Statement (RP) - Payments for Purchases for Land Held for
Resale
Payments for Purchases for Land Held for Resale agrees to - - -
Rate Setting Statement (RP) - Payments for Purchases for Investment
Property
Payments for Purchases for Investment Property agrees to - - -
Rate Setting Statement (RP) - Payments for Purchases for Property, Plant and
Equipment
Payments for Purchases for Property, Plant and Equipment agrees to - - -
Borrowings Note - Principal Repayments Repayment of Borrowings agrees to - - -
Rate Setting Statement (RP) - Repayment of Borrowings Repayment of Borrowings agrees to - - -
Rate Setting Statement (NT) - Repayment of Borrowings Repayment of Borrowings agrees to - - -
Rate Setting Statement (RP) - Proceeds from New Borrowings Proceeds from New Borrowings agrees to - - -
Rate Setting Statement (NT) - Proceeds from New Borrowings Proceeds from New Borrowings agrees to - - -
Borrowings Note - Proceeds from New Borrowings Proceeds from New Borrowings agrees to -
Reconciliation of Cash Note - Cash and Cash Equivalents Cash and Cash Equivalents agrees to - - -
Reconciliation of Cash Note - Cash and Cash Equivalents Cash and Cash Equivalents opening balance agrees to -
Check Note numbers are relevant (i.e. not changed/deleted) and tie up
to totals contained in the relevant note.
Other information note Check any items relating to Initial Recognition of Assets due to Change
in Regulations agrees to Grants Note Check any items relating to Initial Recognition of Assets due to Change
in Regulations agrees to Rates Note Amount Required to be Raised from Rates agrees to - - -
Net Current Assets Note - Closing Surplus Closing Surplus agrees to - - -
Net Current Assets Note - Prior Year Closing Surplus. Opening Surplus agrees to -
Check Note numbers are relevant (i.e. not changed/deleted) and tie up
to totals contained in the relevant note. Other Information Note Check any items relating to Initial Recognition of Assets due to Change
in Regulations agrees to Grants Note Check any items relating to Initial Recognition of Assets due to Change
in Regulations agrees to Rates Note Amount Required to be Raised from Rates agrees to - - -
Net Current Assets Note - Closing Surplus Closing Surplus agrees to - - -
Net Current Assets Note - Prior Year Closing Surplus. Opening Surplus agrees to -
Note 1 (b) Instalment Charges
and Dates
Other Information Note - Interest Earnings List instalment charges, penalty interest and dates, penalty interest on
overdue rates. List charge rates and amounts expected to be raised.
Check these agree to Note 1 (c) Objects and
Reasons
If Differential rates are levied, ensure objects and reasons are correct as
per Council Resolution to levy differential rates. Note 1 (i) Discounts and
Waivers
Rates Note If any discounts/concessions are granted, check amount agrees to
Rate Setting Statement (RP) - Closing Surplus/Deficit Check Closing Surplus/Deficit agrees to - - -
Rate Setting Statement (NT) - Closing Surplus/Deficit Check Closing Surplus/Deficit agrees to - - -
Rate Setting Statement (RP) - Operating activities excluded from budgeted
deficiency
Check non cash amounts excluded from operating activities agrees to - - -
Rate Setting Statement (NT) - Operating activities excluded from budgeted
deficiency
Check non cash amounts excluded from operating activities agrees to - - -
Rate Setting Statement (RP) Check Property plant and equipment acquisition agrees to - - - Rate Setting Statement (RP) Check Infrastructure acquisition agrees to - - - Rate Setting Statement (RP) Check Investment Property acquisition agrees to - - - Rate Setting Statement (RP) Check Land Held for Resale acquisition agrees to - - - Rate Setting Statement (NT) Check Sale proceeds agrees to -
Rate Setting Statement (RP) Check Sale proceeds agrees to -
Rate Setting Statement (NT) Check Profit on Asset Disposals agrees to - - -
Rate Setting Statement (RP) Check Profit on Asset Disposals agrees to - - -
Rate Setting Statement (NT) Check Loss on Asset Disposal agrees to - - -
Rate Setting Statement (RP) Check Loss on Asset Disposal agrees to - - -
Note 5 Asset Depreciation Reconciliation of Cash Note - Depreciation Depreciation to agree to - - -
Depreciation By Class - By Program Depreciation to agree to - - -
Borrowings Note - New Borrowings Check new borrowings agrees to -
Borrowings - Credit Facilities Check overdraft limit matches disclosure at Note 6 (d).
Borrowings - Credit Facilities Check Loan Facilities at Balance Date agree to Note 6 (a). - - -
Borrowings - Unspent Borrowings Check unused loan funds agrees to Note 6 (c).
Estimated Financial Position
Input
Statement of Comprehensive
Income by Nature or Type
Statement of Cash Flows
Rate Setting Statement by
Nature or Type
Note 4 (a) Acquisition of Assets
by Program
Rate Setting Statement by
Reporting Program
Note 4 (b) Disposal of Assets
Note 2 Net Current Assets
Surplus/Deficit
Note 6 Borrowings
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SHIRE OF GINGIN
NOTES TO AND FORMING PART OF THE BUDGET
FOR THE YEAR ENDED 30 JUNE 2021
Net Current Assets Note - Restricted Reserves Check Closing Balance agrees to Surplus. - - -
Net Current Assets Note - Restricted Reserves change on prior year Check movement in Reserves agrees to -
Note 10 (b) Check note number cross reference to Note 10 (b) Interest revenue is
relevant/correct and that totals agree.
Note 10 (d) Borrowings Note - Interest Repayments Check Interest Expenses agrees to - - -
Note 7 Reserves
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